NASDAQ$BKKT

Bakkt Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported financial and operational results for the quarter ended September 30, 2024.

Bakkt's Q3 2024 results showed a net loss improvement of 87.8% year-over-year, driven by increased trading volumes and the upcoming rollout of their institutional trading platform, BakktX. Total revenues increased, primarily due to gross crypto services revenues, while operating expenses decreased excluding crypto costs. The company is also investigating a possible wind-down of Bakkt Trust to focus on core business areas.

  • Crypto enabled accounts grew to 6.5 million, up 6.7% year-over-year.
  • Notional traded volume increased 30.1% year-over-year to $476.5 million.
  • Assets under custody increased 85.5% year-over-year to $938.7 million.
  • Net loss improved 87.8% year-over-year to $6.3 million, benefiting from a $20.0 million gain on the fair value of warrant liability.

Headline financials

Total Revenue

$328M

Previous: $205M+60.4%
EPS

-$0.45

Previous: -$4.75+90.5%
Capital Expenditures

-$545K

No prior period
Free Cash Flow

-$2.89M

Previous: -$17.3M+83.3%
Net Income

-$2.89M

Previous: -$17.3M+83.3%
Operating Income

-$27.4M

Previous: -$52.9M+48.2%
Stock-Based Comp

$2.63M

Previous: $2.96M-11.1%

Revenue & EPS history

Bakkt · Revenue · Quarterly

$328M

Q3 2024+60.4%vs Q3 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Bakkt · $335M total across 1 segment · Q2 2023

  • Crypto Services
    $335M

Forward guidance

Bakkt provided full year 2024 guidance for revenue from loyalty, gross crypto revenue, cash used in operating activities, and end of year available cash.

Headwinds

  • Full year 2024 revenue from loyalty expected to be approximately $49 million - $50 million, lower than prior guidance primarily due to lower transaction revenue.
  • Full year 2024 gross crypto revenue, less crypto costs and execution, clearing and brokerage costs, expected to be at the lower end of $10 million - $15 million range primarily due to timing of activations.
  • Full year 2024 cash used in operating activities expected to be ($84 million) – ($89 million) due to reduction in revenue and higher expenses.
  • Full year 2024 free cash flow usage (non-GAAP) expected to be ($91 million) – ($96 million) due to reduction in revenue and higher expenses.
  • End of year available cash, cash equivalents and available-for-sale securities of $34 million – $39 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+4.3%

Avg return

Earnings day

+14.5%

Avg return

5 days after

+21.3%

Avg return

30 days after

47%

9 / 19 earnings

Positive

+62.5%

Q3 2023

Best reaction

-33.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+0.6%-16.0%-14.8%
Q3 2025-13.0%-23.3%-45.7%
Q1 2025+48.0%+27.8%+29.8%
Q4 2024+13.0%+30.4%-8.6%
Q3 2024-1.8%+155.9%+150.0%
Q2 2024-10.8%-9.8%-27.1%
Q1 2024-5.9%+49.3%+67.4%
Q4 2023-16.3%-14.5%-33.1%
Q3 2023+62.5%+76.4%+143.1%
Q2 2023+0.7%-4.3%-9.2%
Q1 2023-12.4%-5.8%+1.5%
Q4 2022-13.5%-3.2%+25.4%
Q3 2022+20.8%+24.9%-2.9%
Q2 2022+11.1%+2.2%-6.3%
Q1 2022+37.2%+28.8%+13.5%
Q4 2021-33.7%-31.8%-25.3%
Q3 2021-4.1%-11.2%+146.1%
Q2 2021-0.4%-0.7%+3.3%
Q1 2021+0.1%+0.1%-1.6%

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